Skanska's Approach To Increasing Small-Business Opportunities And Strengthening Communities

After 15 years of working across the construction and electric utility spaces, and three with Skanska USA Building, Skanska National Director of Subcontractor Engagement Joycelyn Yue has seen just how quickly commercial real estate can shift. While market cycles might have once followed steady, predictable rhythms, they now move faster, with new variables shaping every turn. 

Recent data underscores this volatility. KPMG reports that private nonresidential construction spending slipped 0.4% in May, even as input costs, excluding labor, rose nearly 2% year-over-year. Manufacturing work has softened as well, particularly in electronics and battery production. In Q1 2025 alone, roughly $6B in battery plant projects were canceled, a record in KPMG’s tracking, Yue said.

She said these shifting conditions have pushed the industry to rethink how it engages smaller and emerging firms. Tariffs, supply chain pressures and policy shifts have made it clear that true resilience depends on a diversity of perspective, capability and scale.

“Skanska may operate globally, but our work is rooted in the places we build,” Yue said. “Each project reflects the people who surround it, from the subcontractors who make it possible to the communities that depend on what we deliver. As we approach the end of 2025, it’s important for us to reflect on how the market has evolved, and how Skanska continues to support customers and subcontractors as a reliable partner in every market we build in.”

Skanska has taken a companywide approach to expanding access and creating opportunities for local, small, diverse and disabled veteran-owned businesses, helping them play an active role in its projects.

“Our teams are working directly with clients to identify project scopes that can help small businesses grow,” Yue said. “When we pair those opportunities with the right firms, it’s a win-win. Our projects benefit from broader participation, and local partners build experience and capacity that strengthens the market as a whole.”

Navigating Tariffs, Volatility And Labor Shortages

Tariffs and geopolitical dynamics continue to influence pricing and lead times across the supply chain. Yue said Skanska’s national strategic supply chain team helps its regional offices stay ahead of those changes. 

“By tracking equipment and materials data across markets, we’re able to manage uncertainty before it reaches the jobsite,” she said.

Skanska’s Summer 2025 Market Trends Report found that 17 of the 25 countries targeted by new tariffs each represent less than 1% of total U.S. imports, meaning most of those tariffs will have little to no direct impact on construction material pricing, Yue said. The more notable effects will likely come from imports sourced from the European Union, Mexico and Canada, though many of those goods could still qualify for exemptions under the United States-Mexico-Canada Agreement, the report stated.

The other constant pressure point is labor, and the shortage of skilled tradespeople, especially in electrical and data center work, continues to tighten, Yue said. The Associated Builders and Contractors projects that by 2026, the industry will need nearly 500,000 new workers to meet expected demand once interest rates begin to ease.

“Through programs like our Construction Management Building Blocks initiative, Skanska helps smaller subcontractors and specialized trade firms develop new skills, refine their management practices and build the experience needed to compete on, and get selected for, larger projects,” Yue said.

Skanska's operations teams create more opportunities for smaller firms by restructuring large projects into smaller, more manageable components. The company also leverages its strategic supply chain team’s global intelligence to provide these firms with real-time insights on pricing, availability and risk management, she said.

“By working closely with subcontractors, we create a more stable, well-prepared network of partners across all our markets,” Yue said.

Strength From The Ground Up

Casting a wide net is at the heart of Skanska’s approach. While its programs evolve to meet specific client and market needs, Yue said the underlying goal remains the same: focusing on building capacity and creating opportunity in the communities where it operates.

One example she mentioned is the company’s Excellence in Construction Leadership Program, which connects high-potential local firms with Skanska leadership. 

“The program is designed to help small-business owners build confidence, strengthen their operational foundation and develop long-term partnerships that open new doors,” she said. “Through interactive small group sessions, the first cohort was able to build relationships and exchange insights with senior leadership and general managers.” 

Skanska also works closely with local advocacy and community-based organizations to recognize local certifications and identify qualified firms, Yue said. In New York, for instance, collaboration with state and local partners has helped the company find niche firms for specialized marine resiliency projects.

“Those efforts not only fill essential roles on complex projects, but they also strengthen the local economy by keeping expertise and opportunity close to home,” she said.

Partnership, Resilience And Growth

As policies, tariffs and labor conditions continue to evolve, Yue said Skanska’s approach remains steady: Lead with partnership, invest in people and stay rooted in the communities it serves.

“By combining local engagement with national supply chain intelligence and inclusive outreach, we’re able to deliver for our clients while helping small businesses grow stronger alongside us,” she said. “The construction market may be uncertain, but our commitment is not. We’re building more than projects; we’re building pathways for collaboration, opportunity and lasting community resilience.”

To learn more about Skanska’s subcontractor engagement, visit view.ceros.com/skanska/subcontractorengagement/p/1.

This article was produced in collaboration between Skanska and Studio B. Bisnow news staff was not involved in the production of this content.

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